Question

If we get the 100 from number 1 each year for ten years and invest each payment in an account that earns 8% how much will be there at the end? (1448.66)

Answer 1

Answer:

$1,448.66

Step-by-step explanation:

The future value of an annuity with yearly deposits 'P' at an interest rate of 'r' invested for 'n' years is determined by:

$FV = P[\frac{(1+r)^n-1}{r}]$

For P = $100, r = 0.08 and n = 10 years:

$FV = 100[\frac{(1+0.08)^{10}-1}{0.08}]\\FV=\ 1,448.66$

The amount at the end of the ten years is $1,448.66